Life is always changing, and with each new high or low you experience, your coverage needs may change. This is why you should review your life insurance policy from time to time.
In this guide, you’ll learn the signs you need to update your life insurance so that your family is always protected.
Life Moments That Call for a Policy Check-In
How often you should review your life insurance depends on the changes you experience and their frequency. Let’s explore some life moments that signal your insurance needs a second look.
Getting Married or Divorced
Getting married? While you’re planning your wedding, you should also review your life insurance. Tying the knot means you’ll likely be combining your finances, taking on shared debts and planning for a future together.
Similarly, if you’re going through a divorce, you may want to change your beneficiaries and update your policy to align with any court-ordered child support or alimony agreements.
Welcoming a New Child
Children bring new financial responsibilities that your current policy may not cover. Reviewing your life insurance allows you to designate them as beneficiaries and plan for their futures.
Buying a New Home
As you get your boxes packed and pick out paint colors for your new home, it’s a smart move to take another look at your life insurance. Because taking out a mortgage is a huge commitment, your life insurance should be a safety net your loved ones can rely on.
That said, it’s advisable to increase your life insurance after buying a house.
Change in Income or Employment
Whether you’ve just landed a big promotion, started a new business or are facing a period of unemployment, these changes are signals to check in on your life insurance.
A higher income may mean you need more coverage to protect your new lifestyle. On the flip side, if your income drops, it may be best to explore more affordable options or adjust your current coverage to better fit your budget.
Change in Beneficiary Needs or Circumstances
Sometimes, the people you have named as your beneficiaries may have experienced changes in their lives, too. A check-in is necessary to ensure you can provide support to the right people who need it.
What Exactly Should You Look for During Your Review?
Whenever you’re reviewing your life insurance policy, look out for the following key details:
- Coverage amount: Check your coverage amount to assess if your current policy still covers all your financial obligations. To do this, you’ll want to tally all your debts, factor in several years of income replacement for daily living expenses and account for future costs and final expenses. Next, subtract any existing life insurance to find your true coverage need.
- Policy type: Review your current policy type against your goals. For instance, term life insurance covers you for a set period and is great for covering temporary needs like your mortgage years. Permanent life insurance, on the other hand, covers you for your entire life and can build cash value over time.
- Beneficiaries: Make sure your beneficiaries are who you want them to be.
Get the Support You Need Today
Experienced any of the above changes lately? If so, it’s time to check your insurance policy again.
The caring advisors at AAdvantage Insurance Group, Inc. believe you deserve peace of mind. We can sit down with you to help you understand your coverage and ensure your family is truly safeguarded. Contact us today to get started. We’re here to help you keep protecting your American dream.
